2010 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

Mgmt. Perspectives

Revenue by Specialty/Niche

Profile

Average

+25% Profit

+25% Growth

Revenues

% of Agencies having an Industry and/or Product Specialty/Niche Total INDUSTRY Specialty/Niche Revenues as % of Agency Net Revenue Total PRODUCT Specialty/Niche Revenues as % of Agency Net Revenue

55.6%

66.7%

50.0%

Expenses

Profitability

27.3%

19.5%

25.5%

Employee Overview

12.9%

14.1%

12.5%

Producer Info

Staff Service Info

Average Revenue per Specialty

% of Agencies Having Specialty

Technology

Top 5 INDUSTRY Specialties Energy

Insurance Carriers

$1,154,964 $1,064,567 $994,828 $937,350 $635,846 $565,323

2.3% 3.0% 2.3% 6.0% 3.8%

Health Care Hospitality Construction Transportation

Appendix

All Others*

16.5%

* “All Others” includes Schools, Churches, Fire Departments, Non-Profits, Auto Dealers, Grocery Stores, Recording Studios, Architects/Engineers, Public Entities, Fast Foods, Defense Contractors

Average Revenue per Specialty

% of Agencies Having Specialty

Top 5 PRODUCT Specialties Surety/Bonds

$510,352 $487,908 $312,426

1.5% 3.8% 0.8%

Professional & Management Liability

Captives

N/A N/A All Others*

$566,632

1.5%

* “All Others” includes Flood and Benefits

“Many disagree, but I think the day of the generalist insurance agent has largely come and gone. Our young guys really buy into this and their successes validate this. Our generalists simply face too much great competition.”

2010 Best Practices Study

Agencies with Revenues Between $5,000,000 and $10,000,000

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